With the market continuing to erode the inventory of homes for sale, we are beginning to see signs of housing shortages. With low inventory comes higher prices.
I am beginning to notice this topic come up more and more and thought I would share a couple articles.
There are some pretty big wild cards in the “housing market” deck yet including the shadow inventory, Europe Debt Crisis, and unknown impacts of new regulations, so who knows. Assuming the market continues on its current path then I do agree we will see pricing increase, and 10% is not out of the question.
The National Association of Realtors’ official forecast says home prices will rise about 3% to 5% this year and next year. But based on recent trends, NAR’s chief economist, Lawrence Yun, says rising prices could surprise many in coming months.
“I would not be surprised if prices went up 10%,” he says.
Read more: http://www.foxbusiness.com/personal-finance/2012/07/16/five-mortgage-and-housing-trends-in-summer-2012/#ixzz220ojKPtg
More evidence that a shortage in available housing is looming was found in the Census Bureau’s release on Friday of its quarterly estimates for residential vacancies and homeownership.